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Location: Georgia, on the Florida line, right above Tallahassee
10,471 posts, read 15,829,266 times
Reputation: 6438
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If a bank sells a home for a loss, it has to be recorded on its books. If a bank holds the home and doesn't sell it, it doesn't count as a loss.
In other words. Home bought for joe_blow for 500K. Home goes into foreclosure. Home appraises for 350K. Bank holds home on books at 500K... so bank won't be liquidated when it is under funded.
Here in Charlotte, there's this very nice home (great neighborhood/schools) and the owner has dropped it all the way down to 450K (which is what he paid for it in 2002) and the houses in that area are listed for 600K-1Million, and still no takers on that house.
That's because as I have been saying for quite some time now, IT'S NOT PRICE! There just isn't anyone really seriously buying right now and chances are, when the occassional one does come along(transfering, sold their existing home so can now move up, and any other reasons that one NORMALLY moves in the NORMAL RE market), if they can afford 600k-1mil, they'll buy it and shop in that price range for what they want. Somehow everyone is under the impression that if all housing takes a "dive to affordable prices" for all, their will be this frenzy of buyers. It simply makes NO sence. Prices of ALL ranges have existed in the RE market since the inception of it and it's concept of home buying. Am I the only one who seems to understand the many, many factors that make all RE markets different and prices as well? Do I really need to list them again? I feel sorry for the poor ******* who lowered his price at the promise he'd sell for sure! Lowering to all of these drastic levels would mean that ALL houses in our inventory, as we know it, would become short sales/foreclosures/and bank owned. Why would anyone go to such measures if they didn't have to?
Location: Georgia, on the Florida line, right above Tallahassee
10,471 posts, read 15,829,266 times
Reputation: 6438
Quote:
Originally Posted by fairmarketvalue
That's because as I have been saying for quite some time now, IT'S NOT PRICE! There just isn't anyone really seriously buying right now and chances are, when the occassional one does come along(transfering, sold their existing home so can now move up, and any other reasons that one NORMALLY moves in the NORMAL RE market), if they can afford 600k-1mil, they'll buy it and shop in that price range for what they want. Somehow everyone is under the impression that if all housing takes a "dive to affordable prices" for all, their will be this frenzy of buyers. It simply makes NO sence. Prices of ALL ranges have existed in the RE market since the inception of it and it's concept of home buying. Am I the only one who seems to understand the many, many factors that make all RE markets different and prices as well? Do I really need to list them again? I feel sorry for the poor ******* who lowered his price at the promise he'd sell for sure! Lowering to all of these drastic levels would mean that ALL houses in our inventory, as we know it, would become short sales/foreclosures/and bank owned. Why would anyone go to such measures if they didn't have to?
Depends on where you are. I see you are in CA so I would agree with you.
We are moving to San Diego area soon and are going to buy a home. We are looking at forclosures online. Most I can tell from pix is the carpet/flooring is trashed and it's hard to tell otherwise.
We are moving to San Diego area soon and are going to buy a home. We are looking at forclosures online. Most I can tell from pix is the carpet/flooring is trashed and it's hard to tell otherwise.
California may be a whole different ballgame in itself. Many "entitled" people who lost their homes took it out on the home itself before they left.
If they couldn't have it then neither should anyone else.
I've seen plenty of pictures of trashed homes most of which were in California.
If a bank sells a home for a loss, it has to be recorded on its books. If a bank holds the home and doesn't sell it, it doesn't count as a loss.
In other words. Home bought for joe_blow for 500K. Home goes into foreclosure. Home appraises for 350K. Bank holds home on books at 500K... so bank won't be liquidated when it is under funded.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,957 posts, read 22,304,764 times
Reputation: 6471
Quote:
Originally Posted by bls5555
Depends on where you are. I see you are in CA so I would agree with you.
Because the ENTIRE state of 45 million people is all one market?
If the OP is asking about the Palm Springs area, he should check with a local professional about what's happening in his area. Palm Springs is a lot different than Stockton, the foreclosure capital of the US at the moment.
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